Pettersson, Petter

RISE - Research Institutes of Sweden, ICT, SICS.

2003 (English)Report (Other academic)

Abstract [en]

Five network services that meet the needs of new Internet applications are formulated as derivatives on the spot price of the capacity in network connections. The derivatives are priced using the Black-Scholes model. The services suggested are: a multcast service for one-to-many connections, a video on-demand service, a service that gives the user perceived higher quality for many applications, a service that allows the requested capacity to vary with time and a service that does not specify the exact time of delivery of capacity.